"Merger of equals" with Karmazin in charge

Monday, February 19, 2007 at 2:04 PM
Tags: 2, XM

Mel Karmazin
While ABC News has supposedly "confirmed" that the merger between XM and Sirius will be announced today (clock is ticking!), their sources also indicate that this would be a "merger of equals."

That seems interesting considering that I can't see either company looking at themselves as an "equal" of the other. Yes, Sirius has the growth momentum and the retail marketshare, but XM has the balance sheet, technology edge and OEM share.

Regardless of the "equals" involved, ABC is also saying that Mel Karmazin would be in charge. And that seems to make sense.

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Comments

Who has the content edge Ryan? A glaring ommission. In media, content is EVERYTHING. That what every reporter and analyst has missed in this. Satellite Radio is a MEDIA business. Content is King.

Ok, now to speculate on the name:

SirXM
XMSirius
Xirius (could be cool)
SXM
SiriX
XiriuM


There is NOTHING on XM's BALANCE SHEET which makes
it superior to Sirius in anyway , shape , or form.

C'mon...XM is a better name AM, FM, XM. Most people can't even pronounce Sirius correctly!

I predict that by the end of the day there will be a company named XM and a company named Sirius. :)

A merger of equals just means its not one company buying the other or taking over the other. It doesn't necessarily mean a 50/50 split on valuations - but probably will be close to that.

MUSCLE13: That edge actually shows through in the retail domination. The presence of big names in Sirius' repertoire gives the consumer a sense of familiarity which then leads them to buy Sirius over XM at retail. I like to call it a "celebrity" edge though, because saying one has better "content" over the other is a matter of preference...

Washington Post, Wall Street Journal, and CNNMoney have all picked up on the story as well. The Post article is about the NY Post article, but the WSJ and CNN have specifically stated their own sources. This is getting interesting

Washington Post, Wall Street Journal, and CNNMoney have all picked up on the story as well. The Post article is about the NY Post article, but the WSJ and CNN have specifically stated their own sources. This is getting interesting

Names:

XMS
Sirius-XM
Sirius Worldwide
XMS Entertainment

or more realistic

Mel's Company
Howard's Cash Crop
Mel: "Whatever Howie says to call it"
Hoo-Hoo Radio
Penero Peanuts
E-Lo will E-Go... away I fear
FreeFm is the only paycheck for the boys

Ok, they last few aren't even names, but you get it.

This will never get aproval.

Even if it is true, it will never get approval.

Ryan Content also shows up in cars. If the consumer has a choice in their car of Howard, NFL, Nascar or Oprah and MLB who will they choose?

Answer = Howard, NFL, MLB, Nascar, and Oprah.
End result = merger. Content is King! Its a media business.

All articles advise they are based on the NY Post story and NO reps from either Satellite service available to comment.

MUSCLE13: is content king? I didn't get it the first 10 times you said it.

Press release here - http://biz.yahoo.com/prnews/070219/nym038.html?.v=75

This is the real deal

YEP DISCO - CONTENT IS KING!!! A couple of years ago Sirius had 600,000 subscribers. Then Howard came along and now Sirius is merging with XM in a merger of EQUALS with Sirius' CEO running the company.

Anymore questions about CONTENT being KING? :)

Ryan - What do you make of this -

From Reuters

While the companies called the deal a "merger of equals," Sirius would own about 53 percent of the shares of the combined entity and XM would own about 47 percent under terms of the deal and based on the companies' outstanding shares in the latest filings.

MSN I NIIPET
http://msn.com >MSN

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